Allocation from General Reserve for Total Reward Review

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 6 August 2021:

Decision Reference: MD-TR-2021-0096
Decision Summary Title:	Reserve Funding for Total Reward Review – VR Scheme		Date of Decision Summary:	27th July 2021
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Reserve Funding for Total Reward Review – VR Scheme		Date of Written Report:	27th July 2021
Written Report Author:	Specialist – Business Cases		Written Report: Public or Exempt?	Public
Subject: The allocation of up to £915,000 in 2021 from the General Reserve - Restructuring to the Chief Operating Office (COO) Head of Expenditure for the Total Reward Review – Voluntary Release (VR) scheme.
Decision(s): The Minister approved an allocation of up to £915,000 in 2021 from the General Reserve - Restructuring to the COO Head of Expenditure for the Total Reward Review – VR scheme.
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement that all allocations from the General Reserve are recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), prior to submission to the Minister for approval. The Investment Appraisal Team has reviewed the business case for this request and recommended it for approval. Following this review the Treasurer, after seeking comments from the PAO, recommends that the Minister allocates funding from the General Reserve. This has been circulated to the Council of Ministers in accordance with the requirements of the policy.
Resource Implications: The COO Head of Expenditure to increase in 2021 by up to £915,000 and the General Reserve - Restructuring to decrease by an identical amount. Any unspent balances in the General Reserve – Restructuring in 2021 will be requested to carry forward in to 2022 as part of the End of Year Report. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-24.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering for COO that this decision is approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Allocation from General Reserve for Total Reward Review - Voluntary Release (VR) Scheme

Treasury and Exchequer

Ministerial Decision Report

Reserve Funding for Total reward review – vr scheme

Purpose of Report

To enable the Minister to approve the allocation of up to £915,000 in 2021 from the General Reserve (Restructuring) to the Chief Operating Office (COO) head of expenditure for the Total Reward Review – Voluntary Release Scheme.

Background

The Total Reward Review (TRR) programme is one of the pillars of the People Strategy that has been approved by the State’s Employment Board (SEB). The Programme will deliver a top-to-bottom review of every aspect of pay and benefits within the public service, including pay progression, grading, and all contractual and non-contractual pay and related policies.

The Voluntary Release (VR) Scheme is a project within the TRR programme that aims to enable a reduction in overall public sector pay costs whilst retaining the essential mix of skillsets required to deliver effective services. As the Scheme is voluntary, the overall financial costs and benefits of the project will be dependent on the extent to which colleagues wish to take part in the Scheme. However, the business case assumes a cost-benefit ratio of up to 3:1 between 2021 and 2025.

While this allocation is solely in respect of 2021, the Scheme is expected to incur costs in 2022 and 2023. The costs for future years will be provided for in the Government Plan 2022-25, subject to the approval of the Government Plan by the States Assembly.

Recommendation

The Minister is recommended to approve the allocation of up to £915,000 in 2021 from the General Reserve – Restructuring to the COO Head of Expenditure for the Total Reward Review – VR Scheme.

Reason for Decision

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

The current Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement that all allocations from the General Reserve are recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), prior to submission to the Minister for approval.

The Investment Appraisal Team has reviewed the business case for this request and recommended it for approval. Following this review the Treasurer, after seeking comments from the PAO, recommends that the Minister allocates funding from the General Reserve. This has been circulated to the Council of Ministers in accordance with the requirements of the policy.

Resource Implications

The COO Head of Expenditure to increase by up to £915,000 in 2021 and the General Reserve - Restructuring to decrease by an identical amount.

Any unspent balances in the General Reserve – Restructuring in 2021 will be requested to carry forward into 2022 as part of the End of Year Report.

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-24.

Report author: Specialist – Business Cases

Document date: 27th July 2021

Quality Assurance / Review:

Group Director, Strategic Finance and the Head of Financial Governance

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0096 - Reserve funding for Total Reward Review - VR Scheme

MD sponsor: Treasurer of the States